Delta Air Lines Tails AMS (Rob Skinkis), originally uploaded by Airliners Gallery.

Delta Air Lines (Atlanta) reported net income for the fourth quarter of $379 million, or $0.45 per diluted share, excluding special items. This is a $221 million improvement year over year.

Delta’s net income for 2011 was $1.2 billion, excluding special items, as the company offset $3 billion higher fuel expense through strong revenue performance and its fuel hedging program.

Delta’s GAAP net income was $425 million, or $0.50 per diluted share, for the December 2011 quarter and $854 million for 2011.

The 2011 results include $264 million in profit sharing expense, including $89 million in the December quarter, recognizing Delta employees’ contributions toward meeting the company’s operating and financial goals.

Delta’s adjusted net debt at the end of 2011 was $12.9 billion, a $4.1 billion reduction from 2009.

Delta recorded special items totaling a $46 million gain in the December 2011 quarter, including:

a $164 million mark to market gain primarily for open fuel hedges settling in future periods. Open hedges will continue to fluctuate in value and Delta will record future changes in market value until the hedges settle;

a $43 million gain associated with the divestiture of slots at New York-LaGuardia and Washington-Reagan National in conjunction with the company’s slot transaction;

an $81 million charge for impairment of intangible assets and grounded aircraft associated with Delta’s capacity reductions; and an $80 million charge for severance and other items, including the loss on early extinguishment of debt.

Delta recorded special items totaling a $139 million charge in the December 2010 quarter, including:

$88 million in merger-related expenses;

$31 million from a loss on early extinguishment of debt; and

$20 million in costs related to the consolidation of operations at Cincinnati/Northern Kentucky International Airport.

Copyright Photo: Rob Skinkis.

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